Today James Turk told King World News that the price of silver just had an important breakout. Take a look…
February 16 (King World News) – James Turk: As you know, Eric, I have near-term targets of $2080 for gold and $26 for silver. I targeted those prices on my expectation that their ratio would fall to 80.
The gold/silver ratio has fallen from the low 90s, which appears to be an important area of overhead resistance. In other words, I’m not expecting silver to become any cheaper when compared to gold. Thursday’s outperformance by silver caused the ratio to drop to 87…
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That’s still a long way from 80, and both gold and silver are below my targets. But gold’s support at $2000 looks solid. And try as they might, the silver shorts were unable to break silver’s support at $22.
It now looks like the silver bulls are again gaining the upper hand. On Thursday silver broke the short-term downtrend going back to the December high price.
Silver Breaks Out Above Sloping Downtrend Line
This chart of the March silver contract shows closing prices only, so the intraday price swings have been removed. By focusing on the closing price, the noise arising from the often frenetic activity of day-traders and scalpers that causes intraday volatility is eliminated.
Silver is not yet out of the woods, but it may soon be if this new uptrend gains momentum, which I expect it will because silver is so undervalued.
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